If you think about it what has been happening here it is insane. Companies like Apple are getting into an effective tax range of 1-5% on their profit.
The purpose of paying taxes is that you get a benefit out of it. I am happy to pay taxes as long as I then have very good roads, a good school system for my kids, decent healthcare, etc, etc.
When you want to do business in a country and that country has a tax setup where companies also pay taxes in their profit, the pay it! It equalises the playing field for all and truly makes the competition fair. The better product, service, setup will win.
In this case companies move money between countries by using the tax rules agains eachother. In the case of StarBucks the royalties on the brand and the profit on that are not taxable in Ireland. Profit in the UK on their actual operation are taxable in the UK. If I now increase my costbase by charging just enough royalties (the right to put starbucks on the window and use the brand) to make the profit close to zero......... we are all smart enough to do the math I presume.
The rule should be that when you make profit in a country, you pay taxes in that country: Period! This way we all get an equal playingfield and companies actually start to contribute to the societies they are making a profit on. I am sure that with this system we will all benefit, including the companies themselves.
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